This is phrased just right. After all, a "prop" is a temporary measure. "Props" eventually fail.
Perhaps housing is what QE-3 will be about. I wouldn't be surprised at all. I also wouldn't be surprised if O'bummer mentions it in his speech tonight. Country be damned. It's all about winning the election.
September 04, 2012
Discounts for Speculators, Foreclosures for Mom and Pop!
Obama’s Secret Plan to Prop Up Housing Prices
by MIKE WHITNEY
Private Equity firms are piling in to the housing market to take advantage of bargain basement prices on distressed inventory. The Obama administration is stealthily selling homes to big investors who are required to sign non-disclosure agreements to ensure that the public remains in the dark as to the magnitude of the giveaway. Aside from the steep discounts on the homes themselves, the government is also providing “synthetic financing to reduce the up-front capital required if they agree to form a joint venture with Fannie Mae and share proceeds from the rental or sale of properties.” (Businessweek)
In other words, US-taxpayers are providing extravagant financing for deep-pocket speculators who want to reduce their risk while maximizing their profits via additional leverage. The plan resembles Treasury Secretary Timothy Geithner’s Public-Private Partnership Investment Program, (PPIP) which Columbia University professor Joseph Stiglitz denounced in an op-ed in the New York Times. Here’s what he said:
“The Obama administration’s $500 billion or more proposal to deal with America’s ailing banks has been described by some in the financial markets as a win-win-win proposal. Actually, it is a win-win-lose proposal: the banks win, investors win — and taxpayers lose.”
More: http://www.counterpunch.org/2012/09/04/obamas-secret-plan-to-prop-up-housing-prices/
Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months
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